On Thursday, Robinhood stopped trading on its platform after its small-time investors caused the stock to skyrocket.
Many are part of the Reddit group “wallstreetbets.”
“Finally, people are playing on a level playing field. They beat Wall Street. So what does Wall Street do? They start changing the rules as it's going on. You should be mad,” said Cody Noel, a follower of the subreddit and GameStop investor.
Robinhood restricted buying for several companies because of market volatility. The company released a statement saying in part:
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”
Now, retail investors are crying foul saying the trading platform is manipulating the market to protect hedge funds that were losing billions.
Craig Pirrong is a finance expert at the University of Houston.
“The hedge funds are going to accuse the guys on Reddit of manipulating the market. The guys on Reddit are going to accuse Robinhood of manipulating the market. It’s going to be a lot of finger-pointing and shouting. Probably, it’s going to end up in court,” Pirrong said.
For now, Cody Noel is holding onto his GameStop stock.
“Diamond hands. I’m not going anywhere,” he said.
He’s motivated by money and revenge against the high-profile short-sellers who bet against the video game company.
“This is not a Republican, Democrat issue. This is David and Goliath. It’s the haves versus have nots. And for once, the have nots are winning,” said Noel.